Agthia Group’s H1 2022 net profit rises 74% to Dhs118m

Leading food and beverage company Agthia Group reported that its H1 2022 net revenues grew to Dhs2bn.

Net revenues showed a 51 percent year-on-year growth compared with the same period in 2021.

Group net profit attributable to shareholders grew to Dhs118m for the period, a 74 per cent increase relative to H1 2021. This performance reflects the impact of the group’s recent acquisitions as well as its cost optimisation efforts as part of its five-year growth strategy.

Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said, “Agthia’s first half results demonstrate the increasing benefits of our growth strategy to strengthen our F&B leadership in the Middle East and beyond. The acquisitions we have completed over the past year have not only delivered strong top-line growth but also contributed to enhanced profitability as we integrate the businesses into the group and leverage synergies effectively.”

Alan Smith, CEO of Agthia Group, said, “In the first quarter, our focus was on the consolidation of acquired entities, and in the second quarter, we turned our attention towards accelerating synergy extraction and group integration, which helped us offset higher direct costs and M&A-related expenses while minimising the impact of supply chain disruption and tackling market volatility and inflation, all without compromising on the quality of our products.

Smith added, “Recent milestones, including board approvals for expansion of our protein business in Saudi Arabia and the acquisition of Egypt-based Auf Group, will further support the realisation of our five-year strategy as we capitalise on our strengthening momentum in-market. Once again, our team has done a great job despite ongoing market challenges, and I am confident that we have the right foundations in place to maintain our momentum in the second half of the year.”

Read: EFG Hermes concludes advisory on Agthia’s majority acquisition of Auf Group